Text of the provision
Art. 1603. In case of doubt, a contract purporting to be a sale with right to repurchase shall be construed as an equitable mortgage.
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Civil Code of the Philippines, Republic Act No. 386, approved June 18, 1949, effective August 30, 1950. Reproduced in full; verified verbatim against the LawPhil and ChanRobles official-text renderings.
What this article means
In case of doubt, a contract purporting to be a sale with right to repurchase is construed as an equitable mortgage — the courts' key tool against disguised loans that strip a borrower of property. (Read with Article 1602's list of tell-tale badges.)
Related provisions
- Article 1600 — How Sales Are Extinguished.
- Article 1604 — Equitable-Mortgage Rules Extend to Absolute Sales.
Cases citing this article
- Heirs of Antero Soliva vs. Severino, Joel, Grace, Cenon, Jr., Renato, Eduardo, Hilario all surnamed Soliva, et al, G.R. No. 159611, April 22, 2015 — read the decision on LawPhil →
- Pascual T. Dy vs. Spouses Renato & Merle Samson, Heirs of Elias Solano & Gleceria Falabi Solano, G.R. No. 228490, February 12, 2024 — read the decision on LawPhil →
- Froilan Dala vs. Edith A. Auticio, G.R. No. 205672, June 22, 2022 — read the decision on LawPhil →
- In the Matter of Urgent Petition for the Release of Prisoners on Humanitarian Grounds, G.R. No. 252117, July 28, 2020 — read the decision on LawPhil →
- Maxima P. Saclolo and Teresita P. Ogatia vs. Romeo Marquito, Monico Marquito, Clemente Marquito, Ester M. Loyola, Marina M. Princillo, Lourdes Marquito And Lorna Marquito, G.R. No. 229243, June 26, 2019 — read the decision on LawPhil →
Compiled automatically from Supreme Court decisions published on LawPhil that expressly cite this article, most frequently cited first. A listing means the decision cites the provision — it is not a statement that the case is the leading authority, and it does not show whether a ruling has since been modified or abandoned. Always read the decision itself.